Investment Insights - The top ten stocks

Hello and welcome to this month's edition of Investment Insights.

This month we look back at some bold predictions made by stock analysts in the Australian Financial Review some five years ago. The article was titled "Ten Stocks for Ten Years" and interviewed analysts who suggested ten stocks that investors should invest in for the next decade. In this piece from Jim Parker at Dimensional he takes a look at how these stocks have performed at the halfway mark... without ruining the surprise for you, the results are not what you would expect! There are two points which make this article relevant; number one being diversification and that investing into ten stocks in the Australian market does not equal diversified, and secondly, that very few people (other than Mr Parker), would have gone back to look at the performance of these predictions.